KLN Logistics Group Limited (0636) AI Stock Analysis

• Market Cap: HK$13.27B
• Dividend Yield: 3.55%
• Average Volume (3M): 1.10M
• Price to Earnings (P/E): 9.7
• Beta (1Y): 0.62
• Revenue Growth: 26.36%
• EPS Growth: -18.67%
• Country: HK
• Employees: 18,700
• Sector: Industrials
• Sector Strength: 72
• Industry: Integrated Freight & Logistics
• EPS (TTM): 0.36
• Shares Outstanding: 1,807,429,300
• 10 Day Avg. Volume: 1,054,817
• 30 Day Avg. Volume: 1,104,482
• PEG Ratio: 0.11
• Price to Book (P/B): 0.74
• Price to Sales (P/S): 0.21
• P/FCF Ratio: 5.75
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: HK$7.50 ▲(4.17% Upside)

The overall stock score is primarily influenced by moderate financial performance, with improvements in profitability but concerns about cash flow management. Technical analysis indicates a bearish trend, which weighs negatively on the score. Valuation metrics suggest the stock is undervalued, providing some support to the overall score.

Positive Factors

Revenue Growth

The substantial revenue growth indicates strong demand for KLN's logistics services, suggesting robust market positioning and potential for continued expansion.

Improved Profitability

Enhanced profitability reflects better cost management and operational efficiency, which can contribute to sustainable financial health and competitive advantage.

Operational Efficiency

Improved operational efficiency suggests effective management strategies and a strong business model, supporting long-term profitability and resilience.

Negative Factors

Cash Flow Concerns

Lack of cash flow data raises concerns about liquidity and cash management, potentially impacting the company's ability to invest in growth and meet obligations.

Decline in Equity

A decline in equity can signal weakening financial stability, which may affect the company's ability to finance operations and growth over the long term.

Leverage and Risk

Moderate leverage suggests some financial risk, which could limit flexibility in capital allocation and increase vulnerability to economic downturns.

KLN Logistics Group Limited Business Overview & Revenue Model

Company Description

KLN Logistics Group Limited (0636) is a logistics and supply chain management company based in Hong Kong, specializing in providing integrated logistics solutions across various sectors. The company offers a wide range of services including freight forwarding, warehousing, distribution, and supply chain consulting. With a focus on innovation and efficiency, KLN Logistics aims to streamline the movement of goods for its clients while enhancing operational effectiveness.

How the Company Makes Money

KLN Logistics Group Limited generates revenue primarily through its logistics and supply chain services, which encompass freight forwarding, warehousing, and distribution activities. The company earns money by charging clients for transporting goods, managing inventory, and facilitating the movement of products from suppliers to end customers. Key revenue streams include service fees for freight forwarding, storage fees for warehousing, and consulting fees for supply chain management solutions. Additionally, strategic partnerships with shipping lines, airlines, and local transportation providers enable KLN Logistics to optimize its service offerings and enhance profitability. The company's focus on technology-driven solutions also supports operational efficiencies and cost savings, contributing to its earnings.

KLN Logistics Group Limited Financial Statement Overview

Summary

Kerry Logistics Network shows a positive trend in income metrics with improved margins and revenue growth in 2024. The balance sheet reflects moderate leverage and an improved return on equity, though the decline in equity presents a risk. Cash flow analysis is hindered by unavailable data for 2024, indicating potential liquidity concerns. Overall, the company demonstrates recovery in profitability but faces challenges in cash flow management.

Income Statement

The revenue growth from 2023 to 2024 was significant at 22.88%, but it followed a sharp decline from 2022. Gross profit margin for 2024 was 9.69%, indicating moderate efficiency. Net profit margin improved to 2.65% in 2024, showing better profitability compared to 2023. EBIT and EBITDA margins improved to 4.83% and 6.26% respectively, suggesting an enhancement in operational efficiency.

Balance Sheet

The debt-to-equity ratio in 2024 was 0.69, indicating moderate leverage. Equity ratio was 39.24%, reflecting a stable capital structure. ROE improved to 9.20% in 2024, highlighting better returns for shareholders. However, the decreasing trend in stockholders' equity indicates potential risk in long-term financial health.

Cash Flow

Free cash flow was not available for 2024, making growth assessment difficult. In 2023, the company had a free cash flow of 2.13 billion. The absence of operating cash flow in 2024 raises concerns about liquidity and cash management. Free cash flow to net income ratio in 2023 was 2.65, suggesting strong cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	60.05B	58.27B	47.41B	82.33B	78.95B	49.62B
Gross Profit	6.06B	5.65B	4.90B	8.35B	9.00B	4.63B
EBITDA	3.79B	3.65B	4.01B	7.77B	7.67B	4.04B
Net Income	1.35B	1.54B	804.03M	3.58B	5.75B	2.90B
Balance Sheet
Total Assets	43.28B	42.70B	42.12B	45.33B	48.16B	56.90B
Cash, Cash Equivalents and Short-Term Investments	6.09B	6.58B	6.52B	9.29B	9.91B	8.95B
Total Debt	11.56B	11.49B	10.86B	11.76B	10.10B	13.66B
Total Liabilities	23.79B	23.62B	22.01B	24.08B	23.33B	24.42B
Stockholders Equity	17.01B	16.76B	17.59B	18.43B	21.04B	27.48B
Cash Flow
Free Cash Flow	2.68B	2.16B	2.13B	3.94B	4.19B	3.26B
Operating Cash Flow	3.39B	2.87B	2.95B	5.56B	5.93B	4.56B
Investing Cash Flow	-1.17B	-777.19M	-1.75B	-574.03M	10.80B	-329.22M
Financing Cash Flow	-2.24B	-2.13B	-3.69B	-4.15B	-15.65B	-1.74B

KLN Logistics Group Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.20
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0636, the sentiment is Positive. The current price of 7.2 is above the 20-day moving average (MA) of 7.17, above the 50-day MA of 7.11, and below the 200-day MA of 7.35, indicating a neutral trend. The MACD of 0.06 indicates Negative momentum. The RSI at 60.29 is Neutral, neither overbought nor oversold. The STOCH value of 71.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0636.

KLN Logistics Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2618	73 Outperform	HK$77.22B	10.88	12.40%	―	11.05%	81.01%
2057	72 Outperform	HK$133.09B	14.74	13.87%	3.05%	12.64%	2.90%
2490	66 Neutral	HK$3.02B	5.64	37.50%	8.25%	56.58%	1963.38%
0598	64 Neutral	HK$44.75B	9.10	9.44%	6.39%	-17.69%	-3.38%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1519	61 Neutral	HK$106.74B	83.64	5.53%	―	12.14%	―
0636	54 Neutral	HK$13.27B	9.73	8.51%	3.55%	26.36%	-18.67%

KLN Logistics Group Limited Corporate Events

KLN Logistics Tightens Corporate Governance With Revised Nomination Committee Mandate

KLN Logistics Group Limited has updated and formally adopted revised terms of reference for its Nomination Committee, aligning its board governance practices with the latest Corporate Governance Code requirements of the Hong Kong Stock Exchange. The revised framework sets out the committee’s composition, requiring at least three directors with a majority being independent non-executive directors and at least one member of a different gender, as well as rules on meeting frequency, quorum, access to information and secretarial support. These changes are designed to strengthen board oversight of director nominations and diversity, enhance transparency and decision-making, and reinforce the company’s corporate governance standards for shareholders and other stakeholders.

The most recent analyst rating on (HK:0636) stock is a Hold with a HK$7.50 price target. To see the full list of analyst forecasts on KLN Logistics Group Limited stock, see the HK:0636 Stock Forecast page.

KLN Logistics Group Announces Leadership Transition

KLN Logistics Group Limited has announced the retirement of Mr. Cheng Chi Wai from his roles as executive director, chief financial officer, and various committee positions, effective April 30, 2026. Following his retirement, Mr. Cheng will serve as an advisor to the company for two years. The company has already identified a seasoned CPA with over 25 years of experience to succeed Mr. Cheng as CFO, ensuring a smooth transition. This change is part of the company’s ongoing efforts to maintain strong leadership and operational continuity.

The most recent analyst rating on (HK:0636) stock is a Hold with a HK$7.50 price target. To see the full list of analyst forecasts on KLN Logistics Group Limited stock, see the HK:0636 Stock Forecast page.